The Current: Michigan AG Sues To Stop Kalshi From Offering Sports Event Contracts
Roundup: PokerStars is getting integrated into FanDuel; PrizePicks is leaving Canada.
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Michigan Attorney General Dana Nessel has sued Kalshi in state court to try to stop the prediction market from offering sports event contracts in the state.
From the complaint:
Kalshi offers an online sports betting operation to residents in the State of Michigan without the licensing approval of the Michigan Gaming Control Board. Specifically, Kalshi operates a so-called prediction market through which residents of the State of Michigan can engage in unlicensed gambling under the guise of trading event contracts. This market is an online trading platform through which users may wager on the likelihood of a sports-related occurrence. Kalshi conducts business across the United States, including within Michigan, where Kalshi makes its services available to residents, markets its platform to potential users, and accepts payments through widely used financial systems accessible by Michigan consumers.
These practices violate Michigan’s prohibitions against gambling as well as several provisions of LSBA*.
*Lawful Sports Betting Act
The types of event contract wagers are numerous, and Kalshi keeps adding more. Examples include who will win the game between the Belleville Senators and the Syracuse Crunch in the American Hockey League, who will win the game between the Frolunda HC and the Lulea Hockey in the Swedish Hockey League, whether Patrick Reed will have a better score than Daniel Hillier during the DP World Tour Qatar Masters, whether the Detroit Pistons and the Washington Wizards will combine for more than 224.5 points, and whether Rider University will win by more than 9.5 points in its college basketball game against Marist University. Kalshi’s expanded offerings include bets on events such as the number of touchdowns a given player will score in a game, how many points a certain team will win by, the overall total score in a game, and bets on combinations of different sports outcomes. In each case, the bettors’ return is determined entirely by an outcome outside their control.
Michigan joins Nevada and Massachusetts in trying to stop Kalshi by taking the company to court. Most cases around the country are taking place in federal court and consist of Kalshi and other operators suing to stop enforcement of state sports betting laws.
While Kalshi has not sued the state of Michigan to stop enforcement of state sports betting laws, Coinbase has.
In April, the Michigan Gaming Control Board noted its concerns about prediction markets to the Commodity Futures Trading Commission, which oversees prediction markets:
The MGCB also warned licensed sportsbooks in the state about attempts to get into prediction markets last year:
Know the Risks
Randy and Anita discuss the common risks associated with sports betting and other forms of gambling that parents and other trusted adults should understand. In this clip, they talk about the heightened risk of problematic gambling after early exposure, and the reality that young people may not grasp the financial impacts of gambling.
Trusted Voices is designed to equip adults, including parents and coaches, with tools and resources to talk to young people about gambling, including information on warning signs and risks.
Gambling news roundup
My latest roundup on all things prediction markets:
PokerStars is getting integrated into FanDuel:
More from SBC Americas: “A FanDuel spokesperson said that the integration of PokerStars will create a best-in-class poker experience exclusively on FanDuel via a dedicated poker app and desktop site. As all play will migrate to FanDuel, PokerStars’ existing U.S. sites will shut down and players will need to create a new FanDuel Casino account if they do not already have one.”
PrizePicks Exiting Canada, ‘Hyperfocused’ on U.S. Expansion (Covers): “Daily fantasy sports company PrizePicks is leaving Canada, a spokesperson confirmed to Covers on Tuesday. The Atlanta-based operator informed customers of the change through email earlier Tuesday, citing a ‘difficult decision’ to pause DFS contests in Canada.”
“On March 3rd, PrizePicks announced its planned exit from the Canadian market,” the PrizePicks spokesperson said. “We are currently hyperfocused on our continued expansion across the U.S. and delivering the best product experience for our players.”
Reverse job board
If you are the victim of a recent layoff in the sports betting industry — or looking to hire — I am going to work on promoting my reverse job board on social media this week (and of course in the newsletter). The hope is to match job seekers with prospective employers.
I am hoping to update the job board with new job seekers this afternoon.
Louisiana Sports Betting Bills Would Ban Props, Bettors That Harass Athletes (Legal Sports Report): “The bill with the biggest impact, SB 354 by Sen. Katrina Jackson-Andrews, would ban most prop bets, including play-specific micro bets. The other bill, SB 325 from Sen. Mike Reese, would force Louisiana sports betting operators to exclude any bettor that harasses anyone involved in an athletic event, including players, coaches and referees.”
Oklahoma House to mull dual-currency ban after Senate approval (SBC Americas): “Senate Bill 1589 was advanced on Monday by a 48-0 vote, sending a measure that aims to outlaw certain “online casino games” in Oklahoma to the House floor for further consideration. The bill, introduced by Sen. Todd Gollihare and Rep. Scott Fetgatter, garnered support from the chamber’s Business & Insurance Committee last month. The measure aims to protect Oklahoma residents and visitors from a lack of consumer protection standards offered by unlicensed online casino game providers, while also acknowledging that unregulated platforms do not adhere to the state’s tax requirements for gambling.”
Virginia’s iCasino Bills Repeat Michigan’s Mistake — And Leave Revenue On The Table (Casino Reports): “While it’s encouraging to see Virginia push forward with attempting to legalize online casino gaming, the vehicle as it stands today will create a market structure that leaves a lot of money on the table — for the state, in-state casinos, and online operators. This results directly from the borrowing of restrictive branding language contained in Michigan’s Internet Gaming Act. Both the House and Senate are considering bills that would allow each of the commonwealth’s five licensed brick-and-mortar casinos to obtain an internet gaming operator license, opening the door to regulated iCasino, a process that may require passage of the bills again in 2027 to effectuate them.”
Sportradar Reports Fourth Quarter and Full Year 2025 Financial Results, and Announces Significant Expansion in Share Repurchase Plan to $1 Billion (press release): Carsten Koerl, Chief Executive Officer of Sportradar, said: “Sportradar concluded 2025 with another quarter of strong performance, demonstrating significant momentum across our business as we continued to drive innovation and customer adoption. For the full year, we delivered on all fronts, achieving record revenue, substantial margin expansion, and increased free cash flow generation. These results underscore the durability of our growth strategy and our mission-critical role within the global sports ecosystem. The acquisition of IMG further strengthens our competitive position, and we are rapidly integrating and monetizing this premium content across our global customer base. Given our financial performance, confidence in our long-term trajectory and robust balance sheet, we have accelerated share repurchases and significantly increased our total authorization. We remain committed to relentlessly creating value for our partners, clients, and shareholders, and we are excited about the opportunities in both the short and long term.”
Full Year 2025 Highlights
Revenue increased 17% to a record €1,290 million
Generated profit for the period of €100 million, 7.8% as a percentage of revenue
Adjusted EBITDA1 increased 33% to a record €297 million and Adjusted EBITDA margin1 expanded 291 basis points to 23.0%
Generated net cash from operating activities of €403 million and record Free cash flow1 of €167 million
Repurchased $91 million of shares and announced significant increase in share repurchase plan bringing total authorization from $300 million to $1 billion
Achieved a Customer Net Retention Rate1 of 109%
Completed the acquisition of IMG ARENA and its global sports betting rights portfolio
Fourth Quarter 2025 Highlights
Revenue increased 20% to €369 million
Generated profit for the period of €4 million, 1.2% as a percentage of revenue
Adjusted EBITDA increased 48% to €89 million and Adjusted EBITDA margin expanded 451 basis points to 24.2%
Generated net cash from operating activities of €88 million and Free cash flow of €18 million
Repurchased $25 million of shares under the share repurchase plan
Sportradar stock was down 10% on Tuesday.
Ifrah Law has been at the center of advancing iGaming in the U.S., shaping groundbreaking legislation, leading precedent-setting cases, and guiding clients that span the iGaming ecosystem through every phase of their business journey. Learn more at IfrahLaw.com.
What Happened To All That Mainstream Sports Betting Content? (InGame): “Not long after the ink on all the PASPA legal briefs had dried, the major networks were rolling out highly promoted shows devoted to sports betting, and there were companion “betcasts” for primetime games left and right. Regional networks and radio stations across the country jumped aboard as well. Now, many revamped lineups and much consolidation later, just a fraction of all that once bountiful mainstream sports betting content remains.”
Jontay Porter And The Mercy Of The Court (InGame): “The Seattle SuperHawks, a franchise in the semi-professional United States Basketball League, was trumpeting its roster signings for the new season set to tip on March 7, when a familiar and completely unexpected player popped into the feed: Jontay Porter.”
“As in Jontay Porter, the man who pleaded guilty in 2024 on a felony count of conspiracy to commit wire fraud after working with gamblers to tank props bets that year, was banned for life from the NBA, and awaits sentencing that could imprison him for up to four years. In a statement to the Associated Press, the USBL said it believes in second chances.”
“While Jontay fully acknowledges the consequences of his actions, he has demonstrated genuine remorse and a strong commitment to personal growth,” the statement read. “The USBL and the SuperHawks are united in offering him the chance to continue his basketball journey, both as an athlete and as an example of how redemption can take shape through accountability and hard work.”
This is very dumb:
Good evening Mr. Gourker. I have been following your page for the past few weeks and am grateful for your excellent coverage of prediction markets news. Would you please publish a full copy of the complaint?